14 big landlords used software to collude on rent prices, DC lawsuit says
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DC's attorney general has sued 14 of the city's largest landlord firms, claiming they entered into agreements with a property management software firm to keep rent prices high in a city with a housing affordability crisis.
The complaint, filed earlier today by Attorney General Brian Schwalb, focuses on the multifamily landlords' use of software from Texas-based firm RealPage, which suggests rental prices based on a pricing algorithm. Key to those models, according to the suit, is the data fed in from the landlords and the pressure RealPage puts on them to stick to the code-derived rental rates.
"RealPage and the defendant landlords illegally colluded to artificially raise rents by participating in a centralized, anticompetitive scheme, causing District residents to pay millions of dollars above fair market prices,” Schwalb said in a release tied to the complaint.